I am not sure I understand the problem. Running the UMOD program installs the texture, .utx, file to the textures directory. Using UnrealEd v. 2, you invoke the texture editor from the toolbar and then open the texture file. Then you right click on an image which opens a popup menu and export to a PCX file. You then can convert this with some other program such as "Image Alchemy" to the format and size of your choice for editing. After editing with an image editing progtam such as Photoshop, you convert back with a program such as "Bright" to 256 color palettized 256x256 size PCX. Then you import it back to UTX file using UnrealEd and save the UTX file.